New Delhi: The Ministry of Coal, after a long gap of 4 years, said in a Press communication today that it has approved the allocation of five Coal Mines. This was the result of the electronic auction conducted by Ministry of Coal in the first week of November 2019. The Ministry had initiated the auction processes for 27 coal mines for Non-Regulated sectors previously.
The Ministry says that, for the first time, the successful bidders shall have the flexibility to sell 25% coal produced in the open market. This will boost the coal production in the country and reduce the dependence of industries on imported coal, said the Ministry.
It is also envisaged that this step will generate huge revenue for State Governments where the mines are located in the form of upfront amount, royalties, and other applicable taxes.
Of the 5 coal mines, 2 are in Madhya Pradesh for whom the successful bidder was Birla Corporation Ltd. One mine in Chhatisgarh was allocated to Prakash Industries Ltd, one mine in West Bengal was allocated to Powerplus Traders Pvt Ltd, and one coal mine in Odisha was allocated to Vedanta Ltd.
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